Dismissing the appeal of the revenue the Tribunal held that, measurement of distance of land from municipal limits aerially, not by road, and which have been substituted by Finance Act, 2013 with effect from 1-4-2014 are prospective in operation and cannot be applied for the relevant year. As regards conversion of land from Agricultural use to non agricultural use though the land was converted into non-agricultural purposes, cultivation of the land for agricultural purposes till the date of sale continued unabated and as such, the land should be treated as agricultural land. Not liable to wealth tax. (AY.2007-08, 2009-10)
ACWT v. M.R. Jayaram (2019) 174 ITD 1 (Bang.)(Trib.)
S. 2(ea) : Asset- Agricultural land–Capital gains-Measurement of distance -Distance of land from municipal limits aerially, not by road, and which have been substituted by Finance Act, 2013 with effect from 1-4-2014 are prospective in operation-Conversion of land from Agricultural use to non agricultural use though the land was converted into non-agricultural purposes, cultivation of the land for agricultural purposes till the date of sale continued unabated and as such, the land should be treated as agricultural land-Not liable to wealth tax. [S. 17, 2(14)(iii)(b)]